A sharp drop in US bond yields in response to soft manufacturing data has highlighted growing concern among investors that the global economic cycle has passed its peak as the spread of COVID-19’s delta variant wreaks havoc on supply chains.

The yield on the 10-year note touched a six-month low of 1.147 per cent after the Institute for Supply Management revealed that US manufacturing activity grew at a slower than anticipated pace last month. US 10-year Treasuries ended down five basis points at 1.17 per cent.